Thailand 4.0: Coming fintech law will carry us forward

[webfact]

EDITORIAL

Coming fintech law will carry us forward

By The Nation

 

Embracing digital banking and other online transactions is the key to unlocking Thailand 4.0
 

Thailand will shortly enact legislation covering financial technology (fintech) to answer the challenges that will emerge as it embraces new forms of financial transactions and related services online. Thailand lags behind some of its neighbours in Southeast Asia in terms of adopting digital technology, but it is not too late to catch up with the likes of Singapore and Malaysia.

 

First, the new law has to assist both domestic and foreign digital entrepreneurs in launching tech initiatives in Thailand. Second, it has to ensure that consumers are adequately protected when they use the electronic services in their financial dealings.

 

The new law is needed because there is a clutter of existing fintech-related laws and they cannot viably be amended or consolidated. It was preferable that a brand-new bill be drafted to connect all the dots and take into account the boom in electronic banking and the like, which needs to be promoted among both investors and consumers. Such services are a crucial component of the digital economy.

 

Over the past year or two, the growth of fintech start-ups has been phenomenal, and they account for 60 per cent of all tech start-ups. That surge has forced regulators to play catch-up as increasingly more consumers rush to use the new services – despite the lack of specific laws governing these services.

 

There are several legal shortcomings that negatively affect both consumers and businesses. For instance, companies are still required to gather their shareholders together in one physical location for meetings. Yet modern technology makes it easy to hold those meetings conveniently and securely via teleconferencing. That’s something the new legislation will address. 

 

In another example, opening a bank account currently requires a personal visit to the bank and the presentation of a physical ID card. Increasingly, people would rather do this online, and again, the technology is readily available to facilitate it. The new law should allow the use of government databases to verify applicants’ identities and thus legitimise non-face-to-face identification, based of course on certain restrictions.

 

A related new law covering both electronic and traditional payment systems will sanction e-payment platforms such as PromptPay and the wider use of QR (Quick Response) codes as a means of payment. The Bank of Thailand will have to introduce a single QR code system for such payments and block the use of too many formats. We need a unified system applicable to all vendors, big and small. This will help facilitate all forms of payment with the use of smart mobile phones, since both payees and payers can be electronically verified in the QR system.

 

The payment system will also boost online commerce to an extent that consumers in more remote areas will benefit from more convenient purchases and have greater opportunities to sell their own products online.

 

The new law will aid both entrepreneurs and consumers. It will be easier to launch fintech and other kinds of start-ups and more attractive for foreign venture capitalists to invest here. Locally registered VC funds will be entitled to tax exemptions on capital gains for up to 10 years. Start-ups’ income taxes will be exempt for up to five years and pay no taxes on capital gain when selling a profitable business.

 

The new legislation should bode well for Thailand’s digital economy and society.

 

Source: http://www.nationmultimedia.com/detail/opinion/30327970

 

-- © Copyright The Nation 2017-09-29

[Somtamnication]

Not good enough. I will wait for corrections with Thailand 4.1 or 4.2 before I trust anything from these yahoos.

[Samui Bodoh]

I can't think of anything more foolish than trusting Thai authorities to effectively manage my money electronically.

 

There may well be a boom in tech/fin start ups, but I have yet to read about a concurrent boon in on-line security. And given Thailand's lackadaisical approach to the concept of privacy, I don't expect one anytime soon.

 

Further, the current government has enacted all sorts of laws essentially giving them the right to pry into anything on-line. And, if they don't like what they see, there is a chance of prosecution (we all read the news). 

 

Thailand 4.0 requires a great deal of trust in the Thai authorities. 

 

I will need to see a LOT of evidence that they are worthy of that trust before they get it.

 

[Mainhattencitizen]

3 hours ago, Samui Bodoh said:

I can't think of anything more foolish than trusting Thai authorities to effectively manage my money electronically.

 

There may well be a boom in tech/fin start ups, but I have yet to read about a concurrent boon in on-line security. And given Thailand's lackadaisical approach to the concept of privacy, I don't expect one anytime soon.

 

Further, the current government has enacted all sorts of laws essentially giving them the right to pry into anything on-line. And, if they don't like what they see, there is a chance of prosecution (we all read the news). 

 

Thailand 4.0 requires a great deal of trust in the Thai authorities. 

 

I will need to see a LOT of evidence that they are worthy of that trust before they get it.

 

Why are they talking about Thailand 4.0 so much when they have not reached the level of a Thailand 1.0 yet

[Krataiboy]

Another step down the slippery slope to a totally cashless society which would give banks total control of all our money and a database of every financial transaction we make.

 

Imagine how useful this information would be not just to banks (who could sell it on to commercial enterprises) but also to governments seeking to extend surveillance and their control of the population.

 

When - not if, because Thailand is pledged to go cashless - all money is digitalised and held on computers both will be able to deny us access to our own money on a whim. 

 

Controlling the money supply is the ultimate weapon for achieving a totalitarian state, yet most people seem blissfully unaware of the financial and political implications.

 

India has been in chaos since moving towards a partially cashless society earlier this year and a quick Google on the subject will reveal - which financial institutions and their glib spokespeople are reluctant to do - the many cons as well as pros.

Edited September 29, 2017 by Krataiboy

[NCC1701A]

i will be happy when the mail in Thailand gets delivered.

[Media1]

Listen. The only Thailand 4 possible. Is a new pizza.company online. Let's start with Thailand 4 power underground and new buses. And maybe fix some pot holes from China buses.

Oh Thailand 4 was made months back via dark Web.  You already have the base model. It works run with it.

[gandalf12]

Ok when did they actually get to version 1.0? Speak up whoever did this

[Srikcir]

2 hours ago, Krataiboy said:

Controlling the money supply is the ultimate weapon for achieving a totalitarian state,

That may become especially true where the state controls all internet actions through a single gateway. In addition to imposing a single national internet gateway, the Chinese government has ordered China’s three state-owned telecommunications companies to completely block access to virtual private networks by February 2018.

https://www.theguardian.com/world/2017/jul/11/china-moves-to-block-internet-vpns-from-2018

Prayut has shown interest in duplicating such internet controls in Thailand.

[Srikcir]

7 hours ago, webfact said:

Yet modern technology makes it easy to hold those meetings conveniently and securely via teleconferencing.

But where a government seeks to control all internet activities through a single national gateway and VPN ban, secure teleconferencing will depend on the degree that the government decides.

 

Prayut has shown an interest to route all Thailand origin internet activities through a national single gateway. To increase government monitoring capability he is also considering control of VPN connections. China operates a single gateway and as of February 2018 will ban VPN. Such control will not unlock Thailand 4.0 but crush it.

 

 

[Media1]

4 hours ago, gandalf12 said:

Ok when did they actually get to version 1.0? Speak up whoever did this

Yes the immigration website is the base model.lol

[Srikcir]

18 hours ago, gandalf12 said:

Ok when did they actually get to version 1.0? Speak up whoever did this

They're not "versions" that imply successive levels of advancement but more like economic models selected for government "focus":

• Thailand 1.0 - Agriculture
• Thailand 2.0 - Domestic Production
• Thailand 3.0 - Export Industries
• Thailand 4.0 - Digital-based Industries

The cumulative intent of these models is to allegedly provide a pathway for escaping the risk of a middle-income trap characterized by rising wage costs and the loss of a competitive edge. 

http://www.nationmultimedia.com/news/opinion/30311850

Unfortunately, the greatest hurdle to success has been the government itself.

 

[PAIBKK]

On 29-9-2017 at 9:59 AM, Mainhattencitizen said:

Why are they talking about Thailand 4.0 so much when they have not reached the level of a Thailand 1.0 yet

It's originally named Thailand 0.4 but some Thai made a mistake .... He only could count 1, 2, 3, 4...

 

0.4 is something that's hard to explain to a Thai as they don't have 0.4 fingers !!!

[dcnx]

They want a digital future but banned Bitcoin.

 

That says all you need to know about the knuckleheads running this circus.

[connda]

On 9/29/2017 at 10:44 AM, Krataiboy said:

Another step down the slippery slope to a totally cashless society which would give banks total control of all our money and a database of every financial transaction we make.

 

Imagine how useful this information would be not just to banks (who could sell it on to commercial enterprises) but also to governments seeking to extend surveillance and their control of the population.

 

When - not if, because Thailand is pledged to go cashless - all money is digitalised and held on computers both will be able to deny us access to our own money on a whim. 

 

Controlling the money supply is the ultimate weapon for achieving a totalitarian state, yet most people seem blissfully unaware of the financial and political implications.

 

India has been in chaos since moving towards a partially cashless society earlier this year and a quick Google on the subject will reveal - which financial institutions and their glib spokespeople are reluctant to do - the many cons as well as pros.

I sorta wish Puerto Rico had embraced a 100% cashless society.  Until the electronic infrastructure that makes up a cashless system is shown for what it is - The Sword of Damocles waiting for gravity to eventually exert its effect - the banks will keep pushing for that stupidity.  Actually, the best thing the world could experience right now is a strong enough solar storm to take out the grid in a country like Sweden in order to show the vulnerabilities of a cashless society.  
Anyway, if Thai 4.0 brings a cashless system to the shore of Thailand, then Ingenuity 5.0 will bring the underground black markets to skirt the control.  It's insanity to go cashless with no fallback mechanism. 

Edited October 1, 2017 by connda